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Can you summarize 10 USC 987?
MISCELLANEOUS PROHIBITIONS AND PENALTIES > Terms of consumer credit extended to members and dependents: limitations
Short Summary
This legal document, 987 of the United States Code, sets limitations on the terms of consumer credit extended to members of the armed forces and their dependents. It prohibits creditors from requiring members or dependents to pay interest on such credit, except as agreed to under the credit agreement or authorized by applicable State or Federal law. The document also restricts the annual percentage rate of interest to not exceed 36 percent. Creditors are required to provide certain mandatory loan disclosures, including the annual percentage rate of interest, Truth in Lending Act disclosures, and a clear description of the payment obligations. The document preempts any inconsistent State or Federal law, but does not preempt any law that provides additional protection to covered members or dependents. It also prohibits certain practices by creditors, such as rolling over credit, requiring waivers of legal recourse, imposing arbitration or onerous legal notice provisions, demanding unreasonable notice, using certain methods of access to accounts or security, requiring allotments, and prohibiting prepayment of loans. Violations of this section can result in fines, imprisonment, civil liability, and voiding of prohibited contracts. The document also provides for administrative enforcement and consultation with various agencies for the establishment of regulations. The Servicemembers Civil Relief Act protections are unaffected by this section.
Whom does it apply to?
Creditors who extend consumer credit to covered members of the armed forces or their dependents
What does it govern?
Terms of consumer credit extended to members and dependents
What are exemptions?
Exceptions are not mentioned in the document.
What are the Penalties?
A creditor who knowingly violates this section may be fined, imprisoned, or both. Civil liability may also result in actual damages, punitive damages, equitable or declaratory relief, and other relief provided by law. The person who violated this section may also be liable for the costs of the action and reasonable attorney fees.
Jurisdiction
U.S. Federal Government